A dispute is brewing in Washington, D.C., as lawmakers consider allowing cryptocurrencies in 401(k) retirement accounts, sparking a rift between the crypto industry and labor unions. The American Federation of Teachers warned of potential losses due to crypto volatility, opposing the move to include alternative assets like crypto in retirement accounts.

Crypto investors and industry figures push back on the AFT’s stance, arguing that the proposed bill would enhance oversight and provide pension funds access to a high-performing asset class. Castle Island Ventures partner Sean Judge and Consensys attorney Bill Hughes criticize the AFT’s opposition, claiming it is politically motivated.

Opposition to including crypto in retirement portfolios continues to mount, with trade unions expressing concerns over the risks associated with volatile cryptocurrencies. AFT president Randi Weingarten emphasizes the need to avoid investing pension funds in unregulated, risky assets, highlighting the potential dangers of including crypto in traditional retirement plans.

Better Markets warns that cryptocurrencies are too volatile for traditional retirement portfolios, creating time-horizon mismatches for pension investors seeking predictability. The AFL-CIO, the largest federation of trade unions in the US, also opposes provisions in the crypto market structure bill, citing systemic risks posed by cryptocurrencies to pension funds and the financial system.

Read more at CoinTelegraph: Trade Unions Increasingly at Odds with Crypto in Retirement Accounts